Decisions can be classified into various types based on the likelihood of the outcome. These types include:
Key Facts
- Programmed Decisions: These are repetitive decisions that deal with simple, common, and frequently occurring problems that have established procedures. They are based on existing policies, rules, or procedures of the organization.
- Non-Programmed Decisions: These decisions are not routine in nature and are related to exceptional situations for which there are no established procedures. They require a different approach and often involve higher-level managers.
- Operational Decisions: These decisions focus on the present issues or problems and aim to achieve a high degree of efficiency. They deal with day-to-day operations and immediate concerns.
- Strategic Decisions: Strategic decisions are long-term decisions that involve the overall direction and goals of the organization. They often require a thorough analysis of alternatives and have a significant impact on the organization’s future.
- Organizational Decisions: These decisions are taken by managers in their capacity as managers and are aimed at achieving certain objectives within the organization. They may involve introducing new systems, transferring employees, or reallocating resources.
- Personal Decisions: Managers also make decisions that are purely personal in nature, but their impact may affect the organization as well. For example, a manager’s decision to leave the organization can create problems for the organization.
- Group Decisions: Some decisions are made collectively by a group of individuals within the organization. Group decision-making is preferred in situations where coordination and collaboration are important for effective implementation.
Programmed Decisions
Programmed decisions are repetitive, routine decisions that deal with simple, common, and frequently occurring problems that have established procedures. They are based on existing policies, rules, or procedures of the organization. These decisions are often made at lower levels of management and do not require extensive analysis or deliberation. Examples of programmed decisions include approving purchase orders, granting leaves, and processing customer orders.
Non-Programmed Decisions
Non-programmed decisions are non-routine decisions that are related to exceptional situations for which there are no established procedures. They require a different approach and often involve higher-level managers. These decisions are often complex, unstructured, and require significant analysis and deliberation. Examples of non-programmed decisions include entering new markets, launching new products, and responding to unexpected crises.
Operational Decisions
Operational decisions focus on the present issues or problems and aim to achieve a high degree of efficiency. They deal with day-to-day operations and immediate concerns. These decisions are typically made by middle and lower-level managers and are aimed at optimizing the organization’s current performance. Examples of operational decisions include scheduling production, allocating resources, and managing inventory.
Strategic Decisions
Strategic decisions are long-term decisions that involve the overall direction and goals of the organization. They often require a thorough analysis of alternatives and have a significant impact on the organization’s future. These decisions are typically made by top-level managers and involve setting long-term objectives, allocating resources, and determining the organization’s competitive strategy. Examples of strategic decisions include entering new markets, acquiring other companies, and developing new products.
Organizational Decisions
Organizational decisions are those taken by managers in their capacity as managers and are aimed at achieving certain objectives within the organization. They may involve introducing new systems, transferring employees, or reallocating resources. These decisions are typically made within the purview of the organization’s policies and procedures and are aimed at improving the organization’s overall performance.
Personal Decisions
Managers also make decisions that are purely personal in nature, but their impact may affect the organization as well. For example, a manager’s decision to leave the organization can create problems for the organization. These decisions are not directly related to the organization’s objectives or operations but may have indirect consequences.
Group Decisions
Some decisions are made collectively by a group of individuals within the organization. Group decision-making is preferred in situations where coordination and collaboration are important for effective implementation. These decisions are typically made by committees, boards, or teams and involve pooling the knowledge and expertise of multiple individuals.
References:
- https://www.economicsdiscussion.net/management/types-of-decision-making/32202
- https://www.decision-making-solutions.com/types_of_decision_making.html
FAQs
What are the different types of decisions based on the likelihood of the outcome?
Decisions can be classified into various types based on the likelihood of the outcome, including programmed decisions, non-programmed decisions, operational decisions, strategic decisions, organizational decisions, personal decisions, and group decisions.
What are programmed decisions?
Programmed decisions are repetitive, routine decisions that deal with simple, common, and frequently occurring problems that have established procedures. They are based on existing policies, rules, or procedures of the organization.
What are non-programmed decisions?
Non-programmed decisions are non-routine decisions that are related to exceptional situations for which there are no established procedures. They require a different approach and often involve higher-level managers.
What are operational decisions?
Operational decisions focus on the present issues or problems and aim to achieve a high degree of efficiency. They deal with day-to-day operations and immediate concerns.
What are strategic decisions?
Strategic decisions are long-term decisions that involve the overall direction and goals of the organization. They often require a thorough analysis of alternatives and have a significant impact on the organization’s future.
What are organizational decisions?
Organizational decisions are those taken by managers in their capacity as managers and are aimed at achieving certain objectives within the organization. They may involve introducing new systems, transferring employees, or reallocating resources.
What are personal decisions?
Personal decisions are those made by managers that are purely personal in nature, but their impact may affect the organization as well. For example, a manager’s decision to leave the organization can create problems for the organization.
What are group decisions?
Group decisions are those made collectively by a group of individuals within the organization. Group decision-making is preferred in situations where coordination and collaboration are important for effective implementation.